A Basic Assumption of the Short Run Is That a Firm

question 44

Multiple Choice

A basic assumption of the short run is that a firm:

• A) can employ more workers and add more capital to the production process.
• B) cannot adjust its workforce or the amount of capital it uses.
• C) can reduce the number of workers it uses, but it cannot adjust how much capital it uses.
• D) can freely adjust the amount of labor and capital that it employs.

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